Frequently Asked Questions

1242. What does Venezuela General License (GL) 50A authorize?

GL 50A authorizes, subject to its conditions and exclusions, transactions prohibited by the Venezuela Sanctions Regulations (VSR) that are related to oil or gas sector operations in Venezuela of the entities listed in the Annex to GL 50A and their subsidiaries. Transactions authorized by Venezuela… Read more

398. Does OFAC consider entities over which one or more blocked persons exercise control, but of which they do not own 50 percent or more in the aggregate, to be blocked pursuant to OFAC’s 50 Percent Rule?

… No. OFAC’s 50 Percent Rule speaks only to ownership and not to control. An entity that is controlled (but not owned 50 percent or more) by one or more blocked persons is not considered automatically blocked pursuant to OFAC’s 50 Percent Rule. … Read more

402. How does OFAC’s 50 Percent Rule apply to situations in which one or more blocked persons owned 50 percent or more of an entity, but subsequent to their designations one or more blocked persons divest their ownership stakes in the entity in a transaction that occurs entirely outside of U.S. jurisdiction such that the resulting combined ownership of the entity by blocked persons is less than 50 percent? How should a person treat property or interests in property of such an entity (1) in future transactions (post-divestment) and (2) that was properly blocked while the entity was owned 50 percent or more by one or more blocked persons?

… According to OFAC's 50 Percent Rule , entities are considered blocked if they are owned 50 percent or more (directly or indirectly) in the aggregate by one or more blocked persons. If … ownership stake such that the resulting combined ownership by blocked… Read more

401. OFAC’s 50 Percent Rule states that the property and interests in property of entities directly or indirectly owned 50 percent or more in the aggregate by one or more blocked persons are considered blocked. How does OFAC interpret indirect ownership as it relates to certain complex ownership structures?

… "Indirectly," as used in OFAC’s 50 Percent Rule , refers to one or more blocked persons' ownership of shares of an entity through another entity or entities that are 50 percent or more owned in the aggregate by the blocked person(s). OFAC urges… Read more

936. Does OFAC’s 50 Percent Rule apply to Hidri Trust and Red Sea Trading Corporation (RSTC)?

… No. OFAC’s 50 Percent Rule does not apply to persons blocked solely pursuant to the blocking sanctions of … Does OFAC’s 50 Percent Rule apply to Hidri Trust and Red Sea Trading Corporation (RSTC)? … No. OFAC’s 50 Percent Rule does not apply to… Read more

399. Does OFAC aggregate ownership stakes of all blocked persons when determining whether an entity is blocked pursuant to OFAC’s 50 Percent Rule?

… Yes. On August 13, 2014, OFAC indicated in its revised 50 Percent Rule guidance that OFAC's 50 Percent Rule applies to entities owned 50 percent or more in the aggregate by one or more blocked persons. Accordingly, if Blocked … stakes of all… Read more

585. May U.S. persons do business with a foreign company in which blocked persons hold, individually or in the aggregate, a less than 50 percent interest? Are foreign persons, including foreign financial institutions, subject to sanctions under section 10 of SSIDES, as amended by section 228 of CAATSA, and section 5 of UFSA, as amended by section 226 of CAATSA, for doing business with a foreign company in which blocked persons hold, individually or in the aggregate, a less than 50 percent interest?

… If one or more blocked persons does not hold, individually or in the aggregate, a 50 percent or greater interest in a foreign company, the foreign company is not itself blocked by virtue of OFAC’s 50 percent rule , and U.S. persons generally are not prohibited… Read more

513. Do the prohibitions imposed pursuant to E.O. 13808 and subsequent Venezuela-related E.O.s also extend to entities owned 50 percent or more by the Government of Venezuela?

… owned or controlled by the Government of Venezuela. This would normally include entities owned 50 percent or more by the Government of Venezuela because in most instances such entities would … controlled by the Government of Venezuela. Also included are any entities that are less… Read more

537. Subsection 2 of Directive 4 applies to certain projects in which a person subject to Directive 4 owns a 33 percent or more interest. Is OFAC changing its guidance on entities owned 50 percent or more by one or more entities subject to Directive 4?

… applies to persons determined to be subject to Directive 4 as well as to entities owned 50 percent or more by one or more persons determined to be subject to Directive 4. The following examples illustrate the relationship between amended Directive 4 and OFAC’s 50… Read more

1081. Am I required to show official documentation that I’ve closed my account at a Russian financial institution blocked pursuant to Executive Order (E.O.) 14024 in order to take advantage of Russia-related General License (GL) 50?

… No. GL 50 authorizes individuals with accounts at Russian financial institutions blocked pursuant to … GL. Individuals who have filed a blocking report with OFAC and are availing themselves of GL 50 must file an unblocking report with OFAC within 10 business days… Read more

Frequently Asked Questions

Office of Terrorism and Financial Intelligence